Responsible Investment in Natural Resources
Satarla co-convened the discussion that challenged just what responsible investing really is...
Article by Satarla Research Associate: Keiran Doyle
Today’s extractives sector plays a vital role in securing critical raw materials and natural resources for our growing population, which is placing increasing stress on the industry to provide sufficient supply in order to meet societal demands. Due to this continued growth in world population, mining operations are at greater risk of causing more widespread impacts, particularly on local communities and sensitive ecosystems. Therefore, it would be reasonable to say that mining investors have a growing responsibility to ensure that the company or project they intend to financially support is demonstrating a minimum level of commitment to ESG issues, and vice versa. However, a few questions remain… What exactly is ‘Responsible Investing’? How can it be measured and delivered effectively? Can the UN Sustainable Development Goals (SDGs) help to drive responsibility in the mining industry? And is the role of an investor to solely consider ‘responsible’ companies, or should they play more of a supportive role in order to help companies become responsible?